Germany raises growth forecast

Frankfurt: The Bundesbank raised its forecasts for German growth, saying Europe’s largest economy has entered a broad and prolonged upswing.

Gross domestic product will expand 3.1% this year and 1.8% in 2012, the Frankfurt-based central bank said in its bi-annual economic outlook.

That compares with a February prediction by then Bundesbank president Axel Weber of 2.5% growth for this year and a December forecast of 1.5% for 2012.

Surveys indicate economic expansion “could even exceed the forecasts in this baseline scenario,” the bank said.

Germany’s economic performance may put further pressure on the European Central Bank to keep raising interest rates, even as the sovereign debt crisis afflicting peripheral countries worsens.